Necessity was the primary factor driving demand throughout the first half of 2023, as buyers looked for homes that could accommodate growing families, provide space for work-from-home arrangements or offer access to better schools. 

“Inevitably, periods of contraction and short-term restraint ultimately give rise to increased pent-up demand,” says Elton Ash, Executive Vice president, Re/Max Canada. “You can only hold back the impetus for so long. Real estate, after all, is driven largely by lifecycle events and broader factors such as population growth. While some will adjust their timing, most purchasers will eventually move forward, and we’ve seen that pattern emerge time and time again as move-up buyers nationwide re-ignite demand and competition for a limited number of listings.”  

Rate hikes expected to temporarily slow market, but demand likely to rebound

Looking ahead, the July 0.25 basis point rate hike by the BoC is expected to slow homebuyer activity during the summer months in most major housing markets. However, once the central bank signals the end of quantitative tightening and rates start to unwind, Re/Max expects housing demand will likely ramp up once again. Supply constraints are expected to become a significant challenge, leading to renewed upward pressure on pricing in the move-up market and across the board.